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Simply talk to your tax accoutant and you'll get all your answers about Depr.
Blacktown has experienced spike in population growth for the past few years and it has good access to road infrastructure like M4, M7 etc., plus houses, townhouses etc., still affordable compare with other suburb. Not sure about St Mary's since I haven't done much DD on that area.
Cheers Jay…..very interesting and very informative feedback.
jayhinrichs wrote:If you change property managers the tenants will stop paying, as they get confused, they have trust issues, many of these tenants have lost homes that were forclosed right out from underneath them, ( as we all know)..
The next thing they will do when the knew prop. manager shows up will be to present them with a laundry list of repair items. and they will only pay when those get fixed ETC ETC ETC..
……..Even if the house is recently rehabbed prior to the tenant moved into the property?
He Brent,
You can certainly use your SMSF to buy property in the US which I've done with my super. For our American poster colleagues, 401K is equivalent to Super Fund. There are financial planner that can assist you setting up your SMSF, typically the fee is between $1600 to $2600.
Given the market condition in the US, to have control of your investment, it is far safe to buy single family house rather than units but it doesn't mean you cannot buy them…they are plentiful.
With regards, to two or three properties. This question is entirely depend on your strategy. I know some investors here in this forum are buying good quality home for 60K per property, a strategy. My strategy is maximizing my cash flow so I buy established properties, spent good money renovating them to manufacture my CG…therefore I can have multiple stream of income rather than one or two including multiple properties available for refinance once finance becomes available in Atlanta.
Email me in this forum and i'll recommend you to my PM who owns his company and manage properties both local and foreigners.
I used a buyer's agent when I bought my properties but have access to his entire team (e.g., realtors, attorney etc, the whole nine yards).
Good luck
worldinvestor wrote:jayhinrichs wrote:law sys this is the concundrem right now nationwide, what is the true value….. Atlanta particularly, is dominated by foreclosure short sales. No one really knows the true value, where as other markets most of the foreclosures are pretty beat up and require a ton of work thereby creating added value. Most of what I see in Atlanta is very new homes or newer that only require flooring paint and modest fix up. I just look at the atlanta market one way. By the best neighborhoods you can. If your buying substantially under reproduction values. at some point there will be a return to a higher price. We bought one this week for 38k that needs maybe 3k. and there is brand new construciton 10 houses down selling at 120k same house same sq ft. etc etc. So what is the value?????Could not agree more, makes perfect sense to me.
I am purchasing properteis in Atlanta at $20-30 sq ft, where building costs in Atlanta is somewhere around $80-90 per sq ft
WI
The property market value in the US right now is measured through arm's lenght transaction between the buyer's and the seller.
Hello lulu1
You are definitely suffering from ANALYSIS, PARALYSIS. You know what that mean, right??????
For those aren't familiar with the term, it means The term "analysis paralysis" or "paralysis of analysis" refers to over-analyzing (or over-thinking) a situation, so that a decision or action is never taken, in effect paralyzing the outcome…..NEVER ACHIEVE ANYTHING.
Investing in real estate is not rocket science but you are making it….DON'T!!! You've anylysed a lot of properties by now, make an inteligent decision base from the facts, then go with your gut feeling. Otherwise, if you continue on what you're doing, you will get more of the same….looping……….analysis paralysis
Good luckCheers
Hello CeeKay
Real Estate investment isn't a rocket science BUT the fundamental MUST be learned. And not to be bias at your age of 65, I would personally join any of the investment courses offered by the following investment guru which are mainly PCF advisor to accellerate your WEALTH creation rather than lose your life time saving.
Steve McNight 12 month course
Margaret Lomas
Helen Collier-KogtevsThese guys are the expert in REI and through their programs they will coach and guide eventually you will achieve your goal.
Their courses would cost you between 2K to 4.5K for 12 months. You only need someone to help you get you started then you can take care from there…if you want you can continue to join their programs.
I've read all their books so needless to attend their courses because I already know what I wanted to achieve.
BTW, Steve bought 200+ properties in the US, so I followed him, I bought 3 myself.
Good luck.
lawsjs wrote:Its hard to explain, but in Aus if someone does a job (generally) they do it to the best of their ability whereas the US it seems to be something to get through before you finish work for the day. It may have something to do with our property managers earning at least $60-70kpa and US ones working with much harder tenants, way more of them and for far less money.
……………She too has made it her 'job' (aside from pocket money she makes selling them) and is spending as much time in the US as she legally can. There is no question that approach will reap rewards – the question for the reader is, how much time can you afford to ensure your investment 'works' as it should?
………….it was just so damn annoying dealing with people who didn't care and a banking system that is at best bizarre in its operation. Conversely I suppose (and unlike Australia) their attitude would be that _I_ didn't care so why should they?
………….Regardless of what approach you take the returns you get will match the time and effort you put in. And believe me it will be maintenance that will kill the cash returns over time.
I have to apologise in advance to our American friends if my comments below are biase…as we call it here locally, I just want to get to the buttom of the issue here:
I've spent a decade in the IT industry whereby the industry core products are American made (e.g., Cisco, Microsoft, Citrix etc). A lot of major Banks and finace companies uses ORACLE for their Financial applications and Banking. Further, I got University degree and MBA degree and all 95% of our academic books were Harvard produced whereby "the customers" focus is at the heart of any business success as proclaimed by Harvard professors who wrote the marketing text books.
Now, all I'm hearing again, again, and again….American attitudes when it comes to customers service is people just don't care…Not only here in this forum I heard this before (i.e I've attend a US Property seminar few months ago, it is the same….American just don't care)
Bryan Tracy (motivational speaker) got it right…those professors from academia or academic all there materials are non sense and doesn't apply in the real world…maybe he is right?
I thought as an Australia visiting the US, you are not allowed to live there and pursue Real Estate investment as stated in your VISA? How is possible for Karina to make a living in the US through buy/selling of real estate investment?
I often here about maintenance is the main issue of owning invest property in the US! IF so, What are the main reasons? (e.g., theft, hign turn over of tenant, PM not screening properly hence you get a bad tenant because they don't get paid much)? What is it? What's the problem with maintenance???????
Is there a way to minimise the maintenance cost (e.g., buy younger property not old ones)?
lawsjs wrote:I am up to my neck in the reality of management right now; I'm in LA fixing up the last 3 months worth of spot fires. Gross yields are nothing but pie in the sky and net yields mean less than stuff all unless you are talking over 2-3 years. And even then I don't trust what I see on paper. I could give you a 60% cap on the 'right' property over the 'right' month:) The US guys understand what I am talking about, it looks great and congratulations for achieving what you have but be careful out there !! If it was that easy, everyone browsing loopnet would be retired decamillionaires.Hi lawsjs,
I can understand your point although I'm here in Australia.
You may be aware or not, the median price here in Sydney around 665K (based from the last seminar i've attend from Steve) so to buy a property whereby Banks only finance 90% LVR, you will need a substantial deposit…plus the property would be negatively geared………..that is why investors looking for positive cashflow often head to regional areas whereby traditionally, positive cashflow is plentiful but prices also have risen due to increasing competition.
I'm using buyer's agent who is based in Australia but its team are all based in Atlanta (e.g. realtors, attorney, building inspector etc). Asyou can see, with your 10% deposit here in Australia would buy an outright property in the US returning net ROI at least 14%….this explain why Australia investors are excited seeing their purchased property with quality finished plus cashflow positive….just like the property posted here. What's possible to achieve in the US in term of ROI, is impossible to achieve here in Australia. For that type of quality property here in Sydney (depending on location) would cost you between 700K to 900K or more.
Hello lilhazel,
Slow down mate….we are not in the buttom of the market nor on the top of the market either.
I say this to newbie investing in property, get your education first. Attend few seminars and read a lot of books.
Why attend seminars and read books???? That is where you will learn the fundamental of investing in real estate.
Investing in real estate is not rocket science BUT you will need to learn the fundamentals the basics.
It is best to learn investing in the right way rather than reimvesting the wheel…….don't need to go with trial and error…someone has already shown the road to everyone.
Spend few months reading REI books..educate yourseld IT WOULD BE THE BEST INVESTMENT YOU'LL EVER MADE, INVESTING IN YOURSELF…some good authors where mentioned above are predominately Cash Flow Positive advocates. For CG advocate get some Michael Yardney's books. For managing your IP, check out Barnes and Doidge.
Once you've starts gaining the knowledge you will find the answers to your questions.
Goodluck
jnaumovski wrote:my key goals are purchase low-cost/affordable properties up to $250,000 each in high growth potential areas that will provide positive cash-flow for the long term.Traditionally, high capital growth IP are mainly located in metro area and regional areas provides positive cash flow returns…to achieve both would be a gold mine. But, having said that i've seen some properties recently in some areas of NSW whereby this can be achieved..
A balance portfolio would be a good idea to consider also (e.g., 50% positive cash flow, 50% high CG).
US and ROI is fantastic!!!
15 months ago, I did contemplated doing this but my mortgage broker warned me that the interest in personal loal is between 12-14 percent. Therefore, your US IP should be netting at least 14% to break even. Now, the killer joy here are the US bank transaction fee, international transfer fee, and the fluctuation on the interest rate….certainly doable but those are the main factors to consider.
You will pick up some ideas from this free seminar but mostly they are introductory topic…then they will ask you to sign up for their program which cost a fortune. Think of it like an entree, they will serve you the main meal and dessert when you become a member.
Hi,
Sounds interesting to me…I'm based in Sydney. Where about you guys are located?
Cheers
lawsjs wrote:jayhinrichs wrote:LET THE BANK TAKE THE PROPERTIES.Just spoke to my PM in Atlanta few days ago, very lovely lady and quite hilarious. One of the many things that I recall from our conversation was US Banks are more cautious and wanting substantial deposits and settlement could take more months to finalise..,..its naturally they learned their painful lesson?
Here if you walk into a mortgage lender' offce and tell them that you're unemployed but have prospect to find a job within six months, they will laugh at you <moderator: delete language>
jcar11457 wrote:Since the tenants are moving out and we are under the pressure of carrying on two mortgages,
Was there a possibility for the IP to be rented out back in the market?
Catalyst wrote:DHCP wrote:It would be a challenge to know the exact amount on how much you've added to the value of your property before you reno the property …usually you do this after the reno is done.If you don't know what the value will be after you do a renovation you should not be renovating.
You NEED to know otherwise you don't know how much to spend and whwther it is worthwhile doing.
It's not rocket science. Just do some research on what similar houses (but renovated) are selling for.looks like you not reading the post accurately….read it again…I'll give you some time.
The key word is "EXACT"…you can do a rough estimate of how much value you be adding, but the precise figures, I doubt it.
If the labour costs are factored into the costs, the profit might be even slimmer? My guestimation of the profit could be between 5-15K, but that's without including your own labour cost. I agree it is hard to make a profit in the current market condition. Not factored into the equation also is the CG of the property?
Was the plan from the starts, flipping the property? If the market was tough to sell, given you had a beautiful finished product, have you thought of renting it out until the market improves then selling it?
